CONTEMPRORARY AMERICA 1976 to 1988 Carter - Reagan

CARTER ADMINISTRATION President Carter wins the election of The American people were in need of a President free of scandal.

Carter’s Domestic Issues

President Carter inherited an economic crisis when he took over office. Inflation was at an all time high. Carter felt the nations largest problem was our dependence on foreign oil. He attempted to get control of our energy consumption by creating the Department of Energy. Instability in the Middle East created fuel shortages. Add that to the problems with policy on taxing of domestic oil companies and you have a national crisis!

Carter’s Foreign Issues

President Carter achieved success in foreign policy by helping to negotiate a peace treaty between Israel and Egypt. This became known as the Camp David Accord. Unfortunately, he also suffered a major defeat when Iranian rebels overtook the US Embassy and captured 54 hostages. Unable to negotiate their release and a failed rescue attempt, they were held hostage for 444 days.

Environmental Issues

In an effort to combat energy consumption issues, many promoted the use of nuclear energy, stating that is was cleaner and cheaper then fossil fuels (like oil). Others feared the effects caused by radiation. People like Rachel Carson (who wrote the book, Silent Spring) fought to have cleaner food and water, wanting to eliminate things like pesticides. In April of 1970 EARTH DAY became official.

Conservative vs. Liberal

Reagan Administration

REAGAN ADMINISTRATION President Reagan (former actor and Governor of California) wins the election of Like President Carter, Reagan inherited massive problems, both domestic and foreign.

Reagan’s Domestic Issues

Reagan faced stagflation when he took office (a combination of high inflation & high unemployment). To combat this he combined two economic programs to create Reagonomics: Monetarism – belief that inflation was caused by too much money in circulation – to combat this, they believed in raising interest rates. Supply-side Economics – believed that the economy was weak because taxes were too high. Reagan’s plan became known as “trickle-down economics”

Reagan’s Foreign Issues

Reagan & the Military Reagan adopted a foreign policy that rejected containment and détente. Reagan’s phrase regarding the Soviet Union was “peace through strength” He launched the largest peacetime military build-up in American History.

Reagan & the Cold War Reagan resumed meetings with the Soviets when Mikhail Gorbachev became the new leader of the USSR. Gorbachev became known for his policies of Perestroika (restructuring) and Glasnost (openness). The Soviet Union was also in massive debt. It was these issues, along with pressure from other countries (like the Reagan Doctrine – undermining communism) that eventually leads to the collapse of the USSR in 1991 (ending the Cold War).